PSE Shorting: You Bash Something You Do Not Understand!
“Hahaha palpak ang shorting!”
“Bulok talaga!”
“Nagpashorting tapos hindi naman available!”
“Look oh! Zero nagshort hahaha!”
Ever wonder why short-selling was launched in the first place?
Yung mga naglaunch nito are not dumb. Opposite pa nga ng dumb kasi may mga PHD at ibang degrees pa yan sila. Most of them sa US pa nag-aral ang mga yan.
We discussed this sa TDS live session namin a week ago and let me share with you some of our discussions.
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Shorting For Retailers
Let’s start by talking about PSE short-selling.
It seems na they have launched short-selling but nobody is shorting anything kasi hindi prepared ang mga brokers for it.
It’s not just preparedness but para baguhin ang platform ng mga brokers ay nangangahulugan na they will need to spend money.
May operational cost ang mga brokers and seeing less and less people trading nowadays ay talagang hesitant din sila magdive sa changes na kailangan to accomodate shorting.
Mas cheaper option pa nga sa iba na gumawa na lang ng new account ang mga users nila for shorting which is weird. May isang account ka for buying or long positions tapos may another account ka for shorting positions.
Yung broker side is not about adapting but more on the expense.
Shorting For Fundies
Lahat ay abala sa pagrereklamo bakit nilaunch pero hindi available ang shorting.
Some are even making fun of the incompetence of PSE.
Well, I think most are not looking at short-selling the way PSE are looking at it.
Madali tumawa sa bagay na di mo naiintindihan.
“Long-only” ang market natin. You buy a stock at yung way mo lang kumita ay kapag umangat ang stock na ito. Once bumagsak ay exit lang ang way mo para hindi masunog.
Wala kang way para ihedge ang position mo.
This is the main reason why foreign funds are exiting our market despite tapos na ang Pandemic.
I remember way back 2020 nung bumagsak ang market tapos biglang nishutdown ng PSE ang pagtitrade.
If foreign ka tapos biglang wala kang access sa investment mo ay napakashocking na event yun.
Foreign investors have no way para iprotect ang investments nila.
That is a huge concern and it shows kasi most ng foreign are selling at wala halos pumapasok at bumibili.
You see a lot of traders complain about “boring” or “matumal” and meron pa nga na binabash ang traded value ng PSE sa isang araw not realizing na without foreign funds ay yan lang ang power ng locals.
That 1 Billion or less na traded value per day ay gawa natin yan. Yan ang power ng locals.
You are actually bashing and complaining about yourself.
Above 100 Million tayo na Pinoy pero 1.3 Million lang ang nasa stock market at most of them pa ay hindi active na nagtitrade.
Saan ka kukuha ng “liquidity” at malaking traded value. Ano yan biglang magic?
Matumal ang PSE market kasi hindi naman tayo nagtitrade. Konti lang nagtitrade.
You are basically complaining about yourself sa ganyan na aspect.
We are foreign-dominated market kasi nga konti lang na pinoy ang nasa stock market.
Ang short-selling na ito nilauch dahil “attract back the foreign investors” ang pakay nito.
We do need foreign investors and hedge funds.
Masakit man isipin pero yung 1 Million BP mo or less ay hindi interested ang PSE sa ganyan na amount.
Our market needs foreign investors and foreign hedge funds.
Domino effect din yan.
Pansinin ninyo this year. Wala halos IPO.
Why? Kasi hindi naman kaya ng local funds isupport ang mga malalaking IPOs.
Need mo ng foreign investors para kumain ng mga ibebenta mo na shares.
Once bumalik na ang mga foreign investors ay sisigla na ang market natin.
Yan ang truth.
Wala pang 2% ng Pilipino ang nasa stock market kaya wala kang aasahan talaga sa local. Kailangan talaga ng foreign investors kaya nga dominated ng foreign investors ang market natin mula pa dati.
Having an option to short will encourage foreign investors to invest their money sa mga stocks natin kasi they can protect it or makakahedge sila via short-selling.
Kaya index at selected mid-cap lang ang pwedeng mashort.
You can complain and laugh about short-selling pero hindi talaga para sayo kaya ginawa yan.
The only thing na “retail trader and investor” ang nasa mind nung ginawa ang ay GSTOCK.
Wala pang balita din sa GSTOCK which was considered to be a liquidity booster for our market via new money from retail traders and investors
Sobrang exciting ng pag announce noon ng GSTOCK pero biglang tumahimik.
Madami pa kami nadiscuss sa mga live sessions but I think this blog will open some of your eyes and mind at makita mo how our market is doing as a whole at mas maintindihan mo ang mga moves na ginagawa ng mga nagpapatakbo ng market natin.
Mark mo ang calendar mo sa November 15.
Heto naman ang mga dating nagjoin sa TDS.
Mark your calendar sa November 15.
Do not miss out!
